As a landlord, securing a buy-to-let mortgage can be a time consuming process when you’re building your property portfolio.
Lenders’ criteria for buy-to-let mortgages can vary significantly, as different lenders interpret the rules in different ways. If you’re a portfolio landlord, seeking professional advice is crucial. As expert advisers, Sarah Grace Mortgages can review your buy-to-let portfolio and help you find the most suitable options for your specific circumstances.
What is a Portfolio Landlord?
A portfolio landlord is regarded as someone who has four or more buy to let mortgaged properties. This definition applies to both sole and joint applications.
You can get a second mortgage for a buy to let property, or even a third and not be considered a portfolio landlord. But if you own four or more buy to let properties with a mortgage, then your application will be subject to the new portfolio mortgage underwriting checks.
Portfolio Landlord Criteria
As part of these stress checks, lenders will need to make sure that you are in a stable financial position. Different lenders interpret the rules in different ways, but they will all look at your entire buy to let portfolio as a first port of call.
Some of the other markers they’re likely to take into consideration include:
Limited Company Mortgages
Rather than owning buy-to-let properties in your personal name, you may choose to hold them through a limited company. This is typically done via a special purpose vehicle (SPV), a company set up solely for the purpose of owning investment properties. Some lenders also accept applications from trading limited companies.
We have extensive experience in arranging mortgages for clients with complex company structures, including scenarios where a trading business provides an inter-company loan to an SPV for the deposit.
As property investors, securing the right mortgage is key to achieving your goals. If you’re interested in learning more about how we can help you secure a mortgage, contact Sarah Grace Mortgages Ltd today for expert, reliable advice.
How Can Sarah Grace Mortgages Ltd Help?
Best Rates
Achieve the best market-leading rate available for your circumstances.
Regular Updates
Provide regular updates on the prompt processing of your application.
Hassle-Free
Liaise with estate agents* and solicitors* to make your property buying experience is as hassle-free as possible.
Experienced
A team of qualified and highly respected mortgage specialists with more than 30 years’ experience.
Knowledge
Expert inside knowledge of the market.
Online
We don’t need to see you face to face; we can do everything by phone, Teams, Zoom and email.
*The FCA does not regulate estate agents and solicitors.
Contact Us
Sarah Grace Mortgages Limited is authorised and regulated by the Financial Conduct Authority and is Registered in England and Wales. Registered Number 09839864
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate most forms of Commercial Buy to Let Mortgages and Mortgages to Limited Companies.
If you wish to register a complaint, please write to East Barn, Chedglow, Malmesbury SN16 9EZ or telephone 0203 6333 888. A summary of our internal complaints handling procedures for the reasonable and prompt handling of complaints is available on request and if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at www.financial-ombudsman.org.uk or by contacting them on 0800 0234 567.
Financial protection policies typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.